The mass retail group Carrefour is being asked to pay a fine of 200 million euros by Bercy for abuse towards its franchisees.
While the distribution giant has been the subject of an investigation by the fraud squad since 2019, The Ministry of Economy, Finance and Industrial and Digital Sovereignty requests a fine of 200 million euros against Carrefour for abusive practices towards its franchise stores. In addition to this sum to be paid, the mass retailer is obliged to modify its contracts.
Following its investigation, the DGCCRF concludes that a number of clauses that hinder Carrefour franchisees are contrary to the French Commercial Code. It therefore asks the court to declare them null and void. The clauses concerned include those concerning the supply of managing tenants, such as those requiring loyalty of purchases to producers at a minimum rate of 45% to 50%. Also affected are the clauses of the shareholders’ agreement between Carrefour and its franchised stores, such as the clause on the right of pre-emption of the business assets as well as a unilateral promise of sale for the sole benefit of the group for a period longer than the duration of the franchise contract.
In a press release issued by Carrefour, the brand “contests the grievances of the Ministry of the Economy relating to the management of its franchise network as well as the totally disproportionate nature of the fine which can only be decided by the court seized of the matter”The distributor specifies that it is able to “demonstrate the validity of its contracts as well as the balance of its relationship with its partners”.
An appeal filed in December 2023
As a reminder, if the DGCCRF investigation began in 2019, an appeal was filed in December 2023 by the association AFC composed of 170 franchisees of the brand, which had attacked various entities of the group (Carrefour Proximité France, CSF, Selima and Profidis) before the commercial court of Rennes, for abusive practices to the detriment of its franchisees and managing tenants.
Since in 2023 more than half of Carrefour’s turnover in France was generated by its franchisees, this sentence could have an effect on its stock market listing, moreover. its shares have already fallen by almost 10%reaching their lowest level since November 2020.
Source: www.ecommercemag.fr
